PRODUCTS & SERVICES CREATING THE STAR ALLIANCE EXPERIENCE

ISO 9001:2008 certified 2 CONTENTS Making Alliance Travel Truly SeamleSS 3 The smoothest travel experience possible 4 Industry firsts keep Star Alliance at the cutting edge 6 Single Checkin for multiple connectionS 8 Fast, efficient document check 10 Putting the focus on 12 Getting priority bags to priority customerS 13 Common Use Bag Drop 13 The Lounge: Inside the comfort zone 14 Making connections easy: Move under one Roof 16 Integrating Alliance products into terminals 18 Connection centres: Making the impossible, possible 20 Software helps when connections are tight 21 Transferring bags from one station to another 22 Tracking bags: A hands-on experience 22 Getting from “lost” to “found” 23 Designing the of the future 24 Star Alliance in the field 25 Marketplaces help employees find out more about Star Alliance 27 ISO certification puts quality first 28 MAKING ALLIANCE TRAVEL 3 TRULY SEAMLESS

Right from the outset, Star Alliance was all about seamless travel - enabling to transfer quickly and easily from one carrier to another. Today, more than a decade after the Alliance was launched, this aim is still a fundamental tenet for all of our and a primary focus for activity and innovation.

From the passengers’ perspective, the expectations are really very simple: • I only need to check in once • I don’t have to worry about my luggage again until I reach my final destination • I get through customs, immigration and security without undue stress • My transfer from carrier A to carrier B is smooth and straightforward • I am confident I will be looked after, kept informed and kept safe every step of the way

This is all easily said, but everyone in the Alliance, particularly those on the front line, knows that delivering on these promises has involved a great deal of behind-the-scenes work, to make systems interact more efficiently and to hone our processes consistently to deliver the best possible service. As such, it’s no accident that Star Alliance continues to lead other alliances in the development of innovative products within the industry. Since its launch in 1997, Star Alliance has introduced a long list of industry firsts, setting the bar high for the other alliances to follow. Our Move under one Roof (MuoR) projects at major airports around the world make us efficient and lay the groundwork for an optimised customer experience. At the airports, we have developed and deployed a host of common products, services and facilities to ensure fast and efficient connections for both people and bags. It’s a win-win-win situation for passengers, member carriers and airport authorities. This decade, we will continue to make those projects even more effective and break ground on some new and exciting ventures. One of those pioneering efforts is collaboration with selected service partners to bring new products to market, dovetailing our knowledge and their technical expertise. By this means we developed a prototype Common Use Bag Drop, where passengers from any Star Alliance carrier can tag and drop their bags, and a customer-friendly kiosk where passengers can enter their bag information themselves if luggage has gone astray. These are time savers for passengers and make the travel experience a little easier. Every one of these projects can be tied back to the customers’ desire for what we in the Alliance would term the Seamless Alliance Travel Experience. This brochure sets out to show how these products can help. I hope it will inspire all our colleagues across our global network to excel in meeting customer needs. Sincerely,

Lee Hock Lye VP, Products & Services Star Alliance 4 THE SMOOTHEST TRAVEL EXPERIENCE POSSIBLE

Excellence in customer service often than not blames the nearest target — the means giving passengers a smooth airline. So customer satisfaction means working and enjoyable journey, seemingly with the airport to address problems in other effortlessly. But even when the airlines areas too.” get every aspect of the “seamless travel The Newark pilot will have a twin focus: The experience” right, other things that go proper execution of Star Alliance customer wrong along the way can sour the overall promises, such as through-checkin, and these journey. A project launched in spring 2011 other aspects of a journey through the airport, aims to tackle that problem. such as security and logistics that are not directly under the airline’s control. The aim is to generate a The Seamless Alliance Travel Experience, or measurable improvement in customer satisfaction. SATE, is an umbrella term that covers every aspect Airline managers at EWR, working together in the of a traveller’s airport experience — checkin, Star Alliance Airport Team (SAAT), and with their baggage drop-off, lounges, and bag pick head office colleagues, have already identified up — and has, to date, been the focus of Alliance a number of issues that hinder travellers from efforts. But in New York’s Newark Airport (EWR), moving smoothly through the facility. Possible the Star Alliance team is going one step further, solutions on the table range from extending an taking a holistic look at the travel experience airport bus route to creating entire new teams to through the airport. help passengers transfer quickly and easily. Input “Seamlessness is the Holy Grail of Alliance travel and commitment from employees on the ground that we are working towards achieving,” said Lee in Newark is essential for success. Hock Lye, Vice President, Products & Services. “Our goal with the pilot is to leave customers with “It’s a difficult goal to reach because there are such a positive experience that they will notice a a number of touch points where anything can difference between their experience at EWR and happen. Some of them are out of the airline’s other airports,” Lee said. “If we can get it right control, such as security. But whether a problem at EWR, we can duplicate that process at other is an airline’s fault or not, the customer more airports in our network.” 5

Passengers queue for checkin at Newark Airport

Our goal with the pilot is to leave customers with such a positive experience “that they will notice a difference between their experience at EWR and other airports.”

LEE HOCK LYE, Vice President, Hub Operations Coordinators Maggie Products & Services Keik, Anthony Gagliardo and Linda Dutko.

Rossi Thomas, Assistant Director, Airport Operations 6 Industry firsts keep Star Alliance at the cutting edge

Star Alliance has constantly been at The Alliance is the forefront of the aviation industry, developing service products that are tapping into the then adopted by the industry worldwide. collective wisdom of Not all products are in use at every airport, but they are all developed with more than 400,000 airline one aim in mind: to make it as easy and “employees through its cost-effective as possible for airlines to deliver a seamless travel experience. innovation project, Brainstorm. One such product developed by the Products MIKE CHEW, DIRECTOR, & Services group is Automated Document Products & Services Check (ADC). This provides checkin staff and passengers with information about requirements and allows an agent to establish quickly and easily at the first checkin 2D barcodes hold more information than point whether a has valid documents conventional one-dimensional barcodes or to complete his or her journey. Singapore magnetic strips on the back of tickets. Airlines was first to introduce it, followed by All of these innovations have brought three others, with at last three more planning to substantial cost savings. E-ticketing too go live in 2011. has become an industry standard that IATA Interline e-ticketing was another industry first, estimates is saving carriers US$3 billion annually allowing customers to travel on any combination as they now rarely need to process paper of Star Alliance member carriers using a single tickets. ADC’s estimated net benefits will be . more than $15 million once it is fully in place. Most recently, 2D barcode technology has 2D barcode also has a handsome payoff - an enabled customers to complete the entire annual saving of $500 million. checkin process online and print their boarding What’s next on the radar? “The Alliance is passes at home or in the office. This Star tapping into the collective wisdom of more than Alliance idea was later adopted as industry- 400,000 airline employees through its online standard by IATA, the International Air Transport innovation project, Brainstorm,” said Chew. “The Association. “A carrier working group began great thing about Brainstorm is that employees developing implementation plans for 2D at all levels in the organisation and across all barcode within the Alliance several years ago, member airlines worldwide can work together and IATA used what we developed towards the 24/7 to hone and shape an idea. It’s too early basis for the new industry standard,” said for details, but several of them are now in the Mike Chew, Director, Product & Services. development stage.” 7 8

Single checkin for multiple connections

Through-checkin for both passengers Through-checkin failure costs airlines money, and their bags is the first critical step in and a cost analysis has been created to better delivering a seamless travel experience understand the implications that such a failure has for customers. on passengers and identify the costs incurred for the carriers as a result. Ideally, customers travelling on two or more Star Take the example where a passenger wants Alliance carriers in a single journey should always to travel from London-Heathrow to Munich on be able to get all their boarding cards when they , then on to Singapore on Singapore first check in, and have their bags checked through Airlines. Ideally, both boarding passes are printed to their final destination at the same time. But before the first flight, and bags are checked carriers’ own statistics for the last six months of through to Singapore. However, should the 2010 show that this only actually happened around be issued only for the first leg of 85% of the time. Star Alliance is now working the trip, the passenger could lose his booking intensively to work out what went wrong in the for the onward flight and so require rebooking. In other 15% of cases, so as to tackle problems and the worst case scenario, the passenger is even break down barriers. stranded overnight with costs for meals, hotels, 9

compensation and transfers all paid by the carrier. “A customer will sometimes check in on an airline The actual cost implication varies hugely by website only for the second or third leg of a flight. location, but a guide figure puts the cost to When he or she arrives at the departure airport to carriers at as much as €205 per passenger, check in for the first segment, the through-checkin depending on a wide range of factors including request fails, as the passenger is already checked the airline’s processes, airport systems and the in on the later segment via the Web,” Elste said. number of bags. Over a full year, that can really “We have determined what the best Alliance start to add up. solutions are and with these recommendations we “One of the conditions of membership in the hope to eliminate some of these inconsistencies.” Alliance is that carriers must be able to offer The Alliance has also created a General Business through-checkin to all of the other member and Technical Requirements document to help carriers. Yet there are still issues with processes when problems arise. Among other points, this that create delivery roadblocks, which the task defines communication parameters for transfer or force has identified,” said Anita Elste, Manager, access of information. It also addresses business Products & Services. considerations, such as defining how far in Web checkin emerged as one area where advance of takeoff a downline carrier has to open processes need improving as it is currently too a flight for checkin. easy for a customer to check in online on only “It’s basically a standard for Star Alliance through- part of their itinerary, making it difficult for staff at checkin implementation,” said Elste. “With this we the airport to follow the standard through-checkin hope to achieve more consistency in implementa- process. tions across the Alliance.” 10 FAST, EFFICIENT DOCUMENT CHECK

Denial of entry to a country on arrival Products & Services. “Until then, airport agents due to missing or invalid documents had to refer to complicated text, or memorise is embarrassing and distressing for a document requirements for each country to be customer and costly for the operating sure that passengers’ documents were valid.” carrier. Automated Document Check If an agent errs and allows a passenger to fly (ADC) is a key product that prevents such without proper documents, immigration fines can situations occurring by allowing checkin be levied against the airline, and the passenger may agents and customers checking in online be refused entry into the country. This results in to verify their documents are valid and inconvenience and cost to both the passenger and complete before the journey begins. the delivering carrier. Available at five member carriers, ADC Dickson said that one of the challenges in building will soon be available at two more: Air such a product was the sheer number of variables Canada and . that needed to be considered, including document types, country regulations and the number of ANA, Asiana, Singapore, THAI and United — permutations that different combinations of the first airlines to use the product — are seeing requirements and documents result in. “In addition, significant reductions in fines and associated costs many countries have convoluted regulations that because ADC virtually eliminates the chance that are difficult to interpret, and cover aspects of travel a passenger will board a flight with an invalid travel that can’t be easily categorised or determined, document. such as ‘sufficient funds’, or even ‘length of hair’ “When the product was first considered for in an extreme circumstance,” he said. “It took the development, airlines told us that there was a concerted effort of the experts from 11 member real need to find a way to automate the decisions carriers to design the product parameters, and involved in determining what travel documents more importantly, to identify the crucial and optional a passenger needs,” said Jay components that would allow automation of Dickson, Manager, document checks. ADC succeeded when others have tried and failed, mainly because Star Alliance has the ability to pool the joint expertise of the carriers to derive a common solution.” With ADC, 11

travel warnings and conditions associated Once the system with the rules of the country are presented in an easy-to-understand checks and confirms format that is then accessed by a documents are in order, carrier’s host system and individually tailored for passengers. This is done it eliminates the need for via a database containing travel “passengers to queue for a rules for 170 countries. With ADC, the system is integrated into the manual check. This helps checkin process, and clear “OK”, speed up processes, “NOT OK” or “OK with Conditions” which benefits both the decisions are provided while the passenger is being checked in. passenger and the airline.” Immigration fines for improper JAY DICKSON, MANAGER, documentation can be virtually Products & Services eliminated by using ADC. At , for example, fines have decreased as much as 94% year-over-year, and customers using Web checkin no longer need to stand in line at the airport to have their travel documents validated by an agent. “Automated Document Check is another step towards creating a seamless travel experience for passengers,” said Dickson. “Once the system checks and confirms documents are in order, it eliminates the need for passengers to queue for a manual check. This helps speed up processes, which benefits both the passenger and the airline.” As other airlines introduce the product, transferring from one Star Alliance member carrier to another becomes much faster. Check in and document checking is done once rather than at each transfer point. That means that travelling on an itinerary covering multiple countries becomes much easier and efficient. In 2010, almost 20 million ADC transactions — or about 55,000 each day — were performed. 12

PUTTING THE FOCUS ON BAGGAGE

Few things bother passengers more when they travel than arriving without their bags. Mishandled baggage is a US$2.95 billion problem for the industry according to the 2010 SITA baggage report. It affects 42.5 million bags per year and is the second most important factor in having a pleasant trip, behind on-time arrivals and departures, according to the International Air Transport Association (IATA). Star Alliance headquarters in is working closely with the member airlines to help them find ways to tackle the issue. During the year, baggage teams monitor airports and member airlines for pre-flight and post-flight handling. In 2010, monitoring was carried out at 20 major stations to understand how errors occurred and where effort could be focused to prevent them in the future. Getting priority bags 13 to priority customers

Star Alliance Gold customers are the On average, premium customers say their bags arrive Alliance’s premium customers. They fly often first on baggage belts about half the time. Generally, ramp and are loyal to the Alliance, therefore it makes agents at destination airports have the last opportunity business sense to ensure they receive the best to ensure any missteps in the handling process are service. Priority baggage delivery is one of corrected. Dickson says it should be easy to spot the those services that is a basic Alliance promise, priority bags and deliver them first 100% of the time. and important to get right. “We are working with airlines to help improve processes that allow priority bags to be loaded and unloaded in a “We want to make sure premium customers get their way that leaves no room for error,” said Dickson. “Most bags delivered first after a flight lands, every time they fly,” are doing a very good job, so now we want to focus on said Jay Dickson, Manager, Products & Services. “When the others to smooth out their handling of priority bags.” they check in, their bags should be tagged with Priority Specifically, Singapore Airlines is leading best practice Baggage Tags and loaded onto aircraft in such a way that sharing sessions, and quarterly monitoring reports from 27 they can be retrieved first when the aircraft arrives at its stations express in numbers how well carriers are doing, destination.” with the goal of identifying and correcting process issues.

Common Use Bag Drop

A concept that holds promise to smooth the first phase of the bag process for both customers and airlines is the Common Use Bag Drop, or CUBD. While more people use kiosks, the Internet and mobile devices to reduce check in time, dropping bags off after check in remains a bottleneck area at most airports. A trial is underway at Narita Airport outside Tokyo involving ANA, and Asiana, in conjunction with ARINC as the technology supplier. ARINC is managing the pilot at no application cost to the participating carriers. “Dropping bags off after check in is one of the pain points we want to remove for customers with the CUBD concept,” said Dickson. “A survey last year found that more than half of passengers were deterred from using self-service checkin as they felt the need to go to an agent to check their bags negated the convenience gained. As well, IATA estimates that the implementation of bag drop counters in conjunction with kiosk and off-airport checkin can improve passenger processing rates by 250% over traditional checkin methods.” While airlines have their own bag drop counters, there is no common product in use with member carriers that accepts bags for multiple carriers on different Departure Control Systems within the Alliance. Such a solution would offer carriers the opportunity to reduce checkin ground costs by sharing common bag drop facilities. 14 The Lounge: Inside the comfort zone

Finding the right mix of destinations the importance of the hub for travellers. to meet the needs of customers is an “Home markets present a different set of important decision for any airline, and challenges than international markets,” said once a destination is chosen, a great Mark Rodrigues, Manager, Airport Development. deal of work goes into the infrastructure “Home market lounges typically have the highest to support that decision. One of those investment by an airline. They are catering directly decisions is where and how to create a to their most loyal customers and the airline lounge for premium customers. typically spends the money on its own without investment from other airlines in the Alliance.” The lounge experience is a key factor in ensuring This investment is justified because lounges also these customers feel looked after and relaxed present an ancillary benefit. Their presence helps before and between flights. Lounges typically cost to promote an airline’s brand and support the millions of dollars to build and maintain, which can customers’ view that they are flying with a quality be out of reach for some airlines in some locations. airline that knows how to look after its customers That’s where Star Alliance comes in. In 1997, when on the ground and in the air. the Alliance was formed, the member airlines “Each carrier has its own philosophy when agreed there was a need to create common it comes to deciding whether to build lounges lounges to reduce construction costs for the or take another approach,” said Rodrigues. carriers while creating an unparalleled level of “International markets cater to a large number of customer service. The Alliance has four lounges premium class passengers from all parts of the for its members – at London, Nagoya, Los Angeles world so it’s not a question of whether a lounge and Paris. London is a good example of where should be built, but how to go about it to balance individual lounges would not be cost effective, but initial investment yet still provide the amenities that where a single shared lounge makes sense, given customers expect.”

Star Alliance lounge, Paris CDG 15

In general, carriers build lounges if the majority of their lounge customers are their own rather than coming from other member airlines. In other cases, airlines will have partnerships with each other if that magic “number isn’t met.” Mark Rodrigues, Manager, airport development

Each airline has its own threshold level. That’s Member airlines generally share the cost of the tipping point that triggers the decision to build usage when their passengers use another its own lounge. For some airlines, one flight a day member’s lounge. In Star Alliance’s case, may be enough if it carries a high percentage participating airlines share the construction of premium customers, while for others, several and maintenance costs of the facility, which in flights a day may be needed to justify the business some cases can represent a substantial saving case. If no other Star Alliance member airlines have compared to constructing on their own. And a lounge, and while waiting for the threshold to be because many airlines use the lounge, it operates met, airlines will often contract the use of other for longer periods during the day as opposed to an airline lounges, or from airports that have built airline-owned lounge that could be open for only a their own. “In general, carriers build lounges if the few hours. majority of their lounge customers are their own “Operating costs are constantly under scrutiny rather than coming from other member airlines. by the member airlines,” said Rodrigues. “Judicious In other cases, airlines will have partnerships with spending is essential in the airline industry, so each other if that magic number isn’t met.” part of our work is to negotiate favourable terms The four Star Alliance lounges have their own at the Star Alliance lounges. For instance, we’ve distinct branding. In some other cases, lounges concluded an agreement that runs to 2016 at our are designed to look like a Star Alliance lounge, but Charles de Gaulle lounge in Paris that improves are owned by a particular airline. Cairo is a good costs and presents a fairer way to split costs example. In the airport’s new Star Alliance terminal, among the carriers. We hope this agreement will EGYPTAIR asked for the Alliance’s help in designing serve as the basis for similar agreements at our four lounges, based on the Star Alliance design. other lounges.” 16 Making connections easy: Move under one Roof

The Move under one Roof (MuoR) concept involves more than mere physical MUOR IN ASIA: collocation of airline facilities in the same terminal; behind the scenes it includes the India: In New Delhi’s Indira Gandhi International development of common products and Airport, Star Alliance is the first to establish joint services that involve IT and purchasing. passenger amenities and related infrastructure What the customer sees are common at the newly opened Terminal 3. In Mumbai, ticketing and checkin counters, lounges, planning among the 12 current and integrating offices, transfer desks and baggage carriers will ramp up in 2011 for the opening of the facilities. upgraded terminal 3 in 2012. Japan: Three MuoR projects have been The benefits for the carriers and their customers completed in Japan — Nagoya’s Centrair Airport have been proven over the years and raised the in 2005, Narita 1 South Wing in benchmark of travel expectations for the industry. 2006 and Tokyo (Haneda) Connection times — one benefit of MuoR — new International Terminal in 2010. are greatly reduced by eliminating the need for South Korea: At Incheon Airport, a major customers to change terminals. For airlines, moving renovation programme created space for together into a single terminal can reduce costs by Alliance carriers in Terminal 1, Concourse A. The more than €2 million per annum in a single airport. third phase of development will see additional Since 2005, MuoR projects have been terminal and transportation infrastructure by completed or are underway at 20 major airports, 2015. with smaller collocations at dozens of airports Thailand: In Bangkok, the new worldwide, which work towards providing a is home to 14 current and seamless Star Alliance experience for customers integrating Star Alliance carriers. and members.

Beijing, Terminal 3 MUOR IN EUROPE: While MuoR projects are 17 austria: MuoR activities have resumed in Vienna after important in all areas construction of the new SKYLINK terminal was delayed due to of the network, close construction cost issues. The terminal should open in 2012. attention is being paid belgium: Carriers have moved together into a dedicated to developing MuoR in section of the main terminal in Brussels. More development is previously underserved planned for 2011. markets. Finland: All Star Alliance Schengen carriers have moved their operations into Helsinki’s T1. SAS built a new lounge for Central/South America: Star Alliance customers in the departure area. Star Alliance has been making significant FRANCE: At Charles de Gaulle Airport in Paris, 24 current network developments in this part of and integrating members operate from CDG. Austrian and Air world with the addition of TAM to the Canada are operating from CDG2 and discussions are ongoing membership, and the future joining of about possible moves for both Ethiopian and to CDG1. Copa and AviancaTACA. TAM’s hubs MuoR and terminal renovations will continue through 2012. are in Sao Paulo, Rio de Janeiro and germany: Star Alliance members’ checkin counters Brasilia; ’ hubs in Panama have been moved together in Munich. Merging of the three City and Bogota, and AviancaTACA’s Berlin-area airports into one new airport, Berlin Brandenburg hubs in Bogota, San Salvador, Lima International Airport, opening in 2012 has opened the door to a and San Jose. The smallest of these new MuoR project. hubs is handling more than two million greece: Collocation activities for the 17 members serving passengers per year, giving the Alliance Athens will resume now that the EU has dismissed the plan to several options when choosing to merge and . establish MuoR projects in the coming poland: After Warsaw’s Terminal 2 began hosting years. international flights, other Alliance carriers joined LOT in china: In Beijing, customers travelling Terminal 2. to and from Beijing Capital International russia: The carriers flying into Domodedovo Airport have Airport are using the new Terminal 3, moved their checkin and ticketing counters into a dedicated the largest such facility in the world. area in the main departure hall of the international terminal. In Shanghai, Pudong’s new Terminal spain: A new terminal opened in 2010 in Barcelona for 14 2 provides space for Star Alliance member carriers. Star Alliance was the first alliance to move to members’ checkin counters. Air China the new facility. has added routes and plans to grow its Shanghai fleet by more than 35% MUOR IN THE AMERICAS: by 2015. It is leading efforts to develop a new Air China lounge to serve the brazil: Initial planning and simulations have been done at Alliance members at Pudong. Sao Paulo-Guarulhos International Airport. Efforts are being Egypt: A new terminal opened in made to optimise GRU as a Star Alliance hub to leverage the 2009 to house Star Alliance carriers in strength of Brazilian home carrier TAM coinciding with the Cairo. Four EGYPTAIR lounges, built opening of Terminal 3 in 2014. in the Star Alliance design, are in the usa: A Star Alliance lounge was built in the Tom Bradley terminal. International Terminal in Los Angeles to look after international u.k.: At London-Heathrow, 12 of 21 passengers. Construction as part of the expansion programme member airlines have moved to Terminal in support of the LAX Masterplan will provide more opportunities 1 temporarily while Terminal 2 for Star for Alliance improvements through 2015. Alliance is built. 18 Integrating Alliance products into airport terminals

Airlines operate more efficiently at services and strategies. airports when they work closely with MuoR is evolving again into an even more other airlines to move passengers from integrated structure called the Star Alliance one flight to another without the need for Integrated Terminal, or SAIT. “Where MuoR was terminal changes. about integrating products and services within existing terminal infrastructure, SAIT is about An early version of this cooperative concept working with airport developers and operators was called collocation and involved the physical in the design phase to create space and move of checkin and ticketing operations into a processes based on Alliance needs, and not just single terminal, or closer together in the same on individual carrier needs,” explained Lee Hock terminal. The concept focused primarily on ease Lye, VP, Products & Services. “Airports welcome of passenger way-finding, establishing a joint our input because we represent the interests Alliance “voice” for the member community, of the airports’ major clients, so it becomes a saving costs and using common space efficiently. win-win-win situation for everyone — airports, Collocation evolved into Move under one airlines and passengers.” Roof (MuoR), a concept that sharpened the SAIT encompasses every step of the cooperation between airlines and airports. There passengers’ journey through the airport from is a greater degree of coordination through curbside through departures and transfers, to the deployment of common Alliance products, arrivals. It allows passengers to pass through the 19

terminal by the shortest and most efficient route including fast-track security, common lounges that suits their needs, and enables seamless and, in future, common use bag drop areas. handling of Alliance originating and transfer “However, space is set aside for member passengers at the first point of contact. carriers to take care of their premium passengers Customer surveys conducted after the individually if they wish. The key benefit from SAIT temporary collocation of services at London- is that we can build on the synergies found in Heathrow’s T1 (while the new terminal is built) MuoR projects, and by working in the early stages support the benefits that SAIT can achieve. of terminal design, we can develop services in a For member carriers SAIT provides cost more holistic manner,” said Lee. “The Integrated savings, enables common training, better Alliance Terminal concept is the natural evolution passenger handling, more efficient IT infrastruc- of the original collocation idea by building on ture, supports the delivery of loyalty benefits to proven elements to achieve the anticipated premium customers between Alliance partners, higher level of customer service and cost-savings and reinforces the Star Alliance experience. for the members. When the new international Within an Alliance terminal, customers can terminal at Haneda opened last October, many expect to find common services no matter which of the components of SAIT were incorporated, member airline they travel on. Such services but the greatest benefit will be noticed when we include common self-service kiosks, ticketing and have our own Star Alliance Terminal at London- checkin desks, premium passenger service zones Heathrow.”

London- under construction. The terminal was designed with input from Star Alliance to optimise the delivery of Alliance products and services. 20 Connection Centres: Making the impossible, possible

When the first Star Alliance Connection systems at every airport. “What we’re seeing in the Centre (SCC) opened in 2002 in Los Connection Centres is a real opportunity to help Angeles, the idea was that customers the member carriers alleviate the distress to their who needed to get from one airplane customers because of the increased number of to another in a hurry could rely on SCC checked bags,” said Elste. “Without these Centres, personnel to get their bags to their customers would be on their own. But the teams connecting flights. at the Centres come to the rescue, turning a potential negative into a positive experience for That original concept remains the mission for passengers.” every SCC the Alliance has opened since. “These centres operate behind the scenes. For example, when Lufthansa cancelled a flight Passengers don’t know about the hard work that is from Cairo to Frankfurt due to the civil unrest taking place to help them make tight connections, in Egypt, thirty-two passengers (among them even before they land,” said Elste. “It’s a case of several diplomats) with a connection via Frankfurt ‘what you don’t see is what you get’, and that to Washington were rebooked on EGYPTAIR, can make all the difference between a bad flight and then onto United. The Cairo flight arrived in experience, and one that makes you want to fly Frankfurt 2 1/2 hours late, leaving passengers again with Star Alliance carriers.” and bags 25 minutes to make the connection. The SCC in Frankfurt arranged for a transfer, and United agreed to take a delay to accommodate this group, some of whom were visibly shaken by the events in Cairo. All passengers and bags made their connection to Washington. “This is an excellent example of the kinds of miracles the Connection Centres at our major hubs perform every day,” said Anita Elste, Manager, Products & Services. “We manage to deliver the customers’ transfer expectations even when it seems that it’s not possible.” In 2010, SCCs handled more than 203,000 bags and customers, resulting in a saving to airlines of more than €13.5 million. There are 12 Star Alliance Connection Centres: Bangkok, Charlotte, Chicago, Denver, Frankfurt, Los Angeles, Munich, Philadelphia, San Francisco, Tokyo-Narita, Toronto and Washington. Airlines have seen a 25% increase in the number of checked bags, primarily because of the stricter security controls on liquids in carry-on bags. This has placed increased stress on baggage An agent in Frankfurt arranges for the transfer of bags from a late arriving flight. The Transfer Decision Tool ensures passenger and baggage misconnects are kept to a minimum. 21

Software HELPS WHEN CONNECTIONS ARE TIGHT

Star Alliance’s Transfer Decision Connection Centres, and at 38 other stations Tool (TDT) allows carriers to monitor around the world. The latest stations to use passengers and baggage at risk of the tool are Albuquerque, Athens, Brussels, missing their connections due to late Cleveland, Geneva, Johannesburg, Newark, arrivals. The Web-based tool tracks Phoenix, Sao Paulo and Washington. passenger and bag information for Star “Customers — especially those who Alliance member carrier arriving flights travel a lot — know that when a flight is and alerts staff of possible misconnec- delayed, they run the risk not only of missing tions, so saving money and improving their connections, or but of making their customer service at 49 of the major connections only to find their bags have airports served by Alliance members. been left behind,” said Elste. “When we exceed their expectations by getting them By using TDT, carriers save money by to their next flights on time, and ensure their reducing the costs of paying for bag deliveries bags travel with them, the effort impresses and hotel expenses for passengers that miss customers. Surveys show that they tend to a connecting flight. “TDT gives carriers all the choose this member carrier again, knowing information they need to identify passengers that these extra efforts are made behind the and baggage at risk and transfer them quickly scene.” between the arriving flight and the departing At Los Angeles, for example, the SCC using flight,” said Anita Elste, Manager, Products & TDT saved more than 3,700 bags over a Services. three-month period. At that station, more than The tool is in use at 11 of the 12 Star Alliance €253,000 was saved on bag delivery costs. 22 Transferring bags from one station to another

The Alliance is using an innovative • warns the operators of likely mishandlings partnership process involving outside before they happen; vendors that saves development costs • suggests potential solutions that are based on for the airlines, while creating unique the specific situation; products for the member carriers. • offers timeframes required to correct a specific One such initiative is the Interline situation. Baggage Transfer Solution, or IBTS. It’s a Web application that is used to IBTS is designed to be airport specific, and will be improve transfer connection baggage the first application in the airline industry that warns performance at airports served by Star of potential baggage mishandlings before they Alliance by flagging problems before they occur. The tool also provides airlines with online happen and suggesting remedial actions statistics about the number and type of bags that when appropriate. are mishandled, and on which flights and dates. A development pilot was tested at London-Heath- The application: row, with final beta testing planned for the second • tracks connection baggage in real time using quarter of the year. The vendor, SITA, created standard baggage messages; the product and plans to begin marketing it by • identifies procedural shortfalls; mid-2011.

Tracking bags: A hands-on experience When a customer reports a missing bag, baggage personnel typically enter the information into SITA’s WorldTracer system. This is usually done by a baggage agent, face-to-face with the passenger. In some cases, this results in long wait times for the passengers before they can raise a baggage claim. To help facilitate the process, self-service kiosks have been developed to allow passengers to input information themselves instead of waiting for a customer service agent. Star Alliance tested two such self-service kiosks in Copenhagen. “This was another world first for Star Alliance,” said Jay Dickson, Manager, Products & Services. “All of our Baggage Service Facilities use SITA’s WorldTracer software, but this was the first time customers could file their information directly using a kiosk.” The kiosk trial is in line with IATA’s Fast Travel initiative, which is intended to give more choice and control to passengers while saving as much as US$1.6 billion for the industry. The kiosk project was developed by SITA for the Alliance to save development costs for the carriers. Star Alliance has direct input into product development. In return, Alliance members have first right of refusal and favourable pricing while SITA is free to sell the technology on the open market. Getting from 23 “lost” to “found”

When bags do go astray, passengers quick service. want to be reunited with their luggage Collocation of these services allows joint as quickly and smoothly as possible. The tendering for such things as baggage delivery, Alliance’s post-flight Common Baggage repairs, common purchasing of overnight kits and Service Facilities (CBSF), otherwise baggage report folders. The CBSF project has known as lost and found offices are also harmonised procedures, service standards saving carriers as much as 15% each and interim payments among carriers to give year in expenses, through lower office customers a one-stop service. and storage costs at airports where the At times, a CBSF goes beyond baggage facilities are shared by airlines in a single recovery. “The CBSF at Chicago has become location. more of a connection information and support centre, rebooking centre and irregular operations The service they provide has drawn positive centre,” said Tom Trapp, ANA Station Manager feedback from passengers. “When I arrived for Chicago. “This winter Chicago experienced at Narita, I was informed that my luggage was diversion flights from Delhi and Tel Aviv when not loaded because of short connection time Newark was impacted by snow. United supported at Frankfurt,” wrote one passenger. “I worried Continental by using the CBSF to assist the about the business documents inside, but one disrupted customers.” bag arrived by ANA flight on the same day and The Alliance carried out service audits at some the other one by the next day’s Lufthansa flight. I CBSFs to ensure consistent service delivery. The appreciate the quick arrangements by the Narita CBSF team has started a campaign to speed Baggage agent.” up the baggage recovery/tracing process and In another instance, an SAS passenger who subsequently deliver delayed bags to their owners originally intended to fly to Narita was re-routed faster, which results in better customer service through Beijing because of bad weather. His and lower cost for the member carriers. baggage was not loaded on the flight, but was There are 22 CBSFs in the network including delivered to him the next day. The passenger new ones in Delhi, Tokyo-Haneda and called Narita to express his appreciation for the Manchester.

CBSF office, Suvarnabhumi International Airport, Bangkok 24 Designing the airports of the future

More and more, when airport of premium customers? authorities plan for expansions or New technologies, concepts and solutions can renovations, Star Alliance is involved be tested first in virtual reality, then recommen- to ensure the changes will optimise dations can be made to speed up the delivery facilities and processes for its member implementation process. carriers, improve operations for airports The tool is flexible enough to work with multiple and reduce hassle for customers. inputs such as flight schedules and flow layouts to ensure all angles are examined. It has proven The Products and Services team uses a its value during the planning and construction specially-designed Airport Simulation Planning of the new London-Heathrow T2A-B campus, Tool that models how infrastructure and airport Berlin Brandenburg Airport checkin allocation, operations will function under various scenarios. Helsinki collocation and Sao Paulo’s Move under The programme can show passenger, one Roof planning. Analysis and statistics show baggage and aircraft flows at any airport that a certain amount of space is needed for including the departure, transfer and arrival Star Alliance activities, with certain processes processes. It answers the often critical “What designed to better meet member carrier needs. if?” questions. What if 300 passengers arrive at While a good working relationship has always checkin at the same time? How many checkin existed between the Alliance and airport positions will be needed? How many security authorities, helping authorities visualise and screening stations, what kind of lounge will be measure various scenarios that work for all sides needed – and where - to look after the interests is a great benefit when working together. Star Alliance 25 in the field

To help support initiatives at the airport convened by the Star Alliance Airport Coordinator level, Star Alliance works closely with (SAAC) to identify opportunities to improve the senior airline management at major customer experience at their airport and to airports. Station managers for each work together with local authorities to improve airline comprise a Star Alliance Airport processes and overall facilities. Team, or SAAT, headed by a coordinator “We really depend on the work the SAATs do at who is typically from the home carrier the 75 airports where the teams have been set or the carrier with the largest traffic up,” said Susanne McLaughlin, Regional Director, volume. Americas. “Because Star Alliance carriers are represented in so many airports around the world, In general a SAAT is established at airports it is important to maintain consistent delivery where five or more member carriers operate of Star Alliance products at every one of them. from, or at other strategic airports where fewer Sometimes it can be a challenge to maintain the than five operate. Star Alliance promise to our customers all over the “The SAATs act as our eyes and ears on the world and things do go wrong. The SAATs make ground at the major airports, and are instrumental this more efficient by monitoring activities and in helping us implement the various products and working together to resolve issues and develop services that the Alliance has developed on a local solutions if required. local level,” said Lisa Yang, Regional Director, Asia/ Without their involvement, maintaining a Pacific. seamless travel process for our passengers SAAT members participate in regular meetings would be that much more difficult.”

The Chicago SAAT meets regularly to discuss new products and services, and to review issues that need resolving. From left: Rosalie Crabbe, ; Nick Morocco, Star Alliance Project Manager; Janise Robinson, US Airways Deputy Station Manager; Charlotte Thynebjerg, SAS Station Manager; Tom Trapp, ANA Station Manager; Markus Augstberger, SWISS Station Manager; Rhonda Robinson, United Airlines International Operating Manager; Rolf Pilgram, Director Operations and Airport Services; Manuela Elia, Lufthansa Deputy Station Manager. Missing from photo Jeff Leifer, United Airlines, SAAT Coordinator. 26 Marketplaces help employees find out more 27 about Star Alliance

Marketplaces are popular and fun ways to (Haneda) new international terminal, Star Alliance bring the Star Alliance message to frontline participated in a global expo that attracted more than employees. These are held at airports around 35,000 visitors. Booths were set up at the airport by the world to promote the Alliance and help carriers to showcase the Star Alliance presence at the those working at our member airlines to airport. understand what the Alliance is all about. Other events held throughout the year included: Marketplaces are open to all member carrier employees who can drop in during a break or • Chicago, USA: Upgraded baggage facility at the end of a shift to learn more about ways signage; a “Taste of Star” event hosted by in which Star Alliance supports the carriers catering firm, Flying Food Group; and their customers. • Delhi, India: Ribbon-cutting ceremony for new T3 Star Alliance common facilities; Typically, each Marketplace attracts several hundred • Denver, USA: Opening of the Denver employees, but several thousand have been known Connections Centre; to attend, particularly if a carrier is new to the Alliance. • Guangzhou, China: 16th Asian Games Events are organised by local carriers who see the countdown event with seven member carriers value in building awareness about the Alliance. The participating; teamwork between carriers promoted by such events • Nagoya, Japan: Two seminars for Star ensures ongoing success when delivering the Alliance’s Alliance Airport Team members and frontline staff; products and services. • Sydney, Australia: Awareness building In 2010, Marketplaces were held in Chicago, Houston, event for airport staff; Kuala Lumpur, Mumbai, Tokyo and Washington, • Toronto, CANADA: Continental’s collocation attracting more than 3,400 employees. with Alliance carriers; The Alliance is also involved in a wide range of other activities – some hosted by Star Alliance, others by The Products and Services business unit is also active airports and member airlines – that put the spotlight on in distributing information to North American stations the work that Star Alliance is doing and how member using more than 100 information boards. Its staff carriers and their staff are cooperating on the ground. conduct regular meetings with airport managers to To mark the opening of Tokyo international Airport’s discuss and resolve issues.

LEFT: Flight Attendants representing six Star Alliance carriers at Haneda Airport. RIGHT: Employees attend a Marketplace in Houston. 28 ISO certification puts quality first

In 2005, the Star Alliance Products & Services business unit committed to maintaining a measurably high standard in its processes for the benefit of customers and suppliers. Because the Alliance is an international company, the business unit chose ISO9001 certification as the benchmark to meet. It’s a standard that has been implemented in thousands of companies worldwide.

Each year, the business unit undergoes an audit of its processes to ensure continuing compliance with international standards. The business unit has its own quality management system in place, based on the ISO standards manual. “We follow the system outlined in the manual in our daily work,” said Monica Vogt, Manager, Products & Services. “It basically ensures that we are following the processes, and properly documenting, updating and archiving our work. This is particularly challenging because of the high turnover of employees at the company, so our quality management system, or QMS, helps keep the documentation and processes running smoothly, regardless of internal changes.” ISO certification is a rigorous process that includes yearly internal and external audits. This means more discipline and attention must be paid to everyday work in order to have all documentation follow the QMS. Quarterly management review meetings are held to evaluate the QMS and identify further improvements in the system and current activities. The audit takes into account resources, customer feedback, quality in the products and services produced, personnel, documentation procedures and other factors. Non-conformities are noted and resolved. “We chose to undergo ISO certification because it’s clear that the benefits are worth the extra effort required,” said Vogt. “The QMS allows us to identify and meet the needs of our customers. It creates transparency in our work because all of our processes are outlined and all documentation is made readily available. The QMS ensures quality of products and services in all stages of development, ensuring a competitive advantage that other Alliances don’t have.” 29

CREDITS

Produced for Star Alliance Products & Services Business Unit

Christian Klick, Vice-President, Corporate Office

Lee Hock Lye, VP, Products & Services

Monica Vogt, Manager, Products & Services

Janet Northcote, Director, Internal Communication

Edited by: Garry Bridgewater, Sherana Productions

Art Direction and layout: Rachel Niebergal, Peridot Design